Extended warranty at time of purchase for diesel or no?

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Units

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Getting out of my ‘22 6.4l (long story) and going to pull the trigger on a new ‘23 6.7l very soon. I fall into the category of a diesel rookie, so I am considering buying an extended warranty for the truck. Is it worth it even though it’s got a 5/yr - 100k factory power train warranty? And if you bought one for a diesel, which did you buy, when did you buy it and have you used it. I’m open to all suggestions and opinions.
 

bcbouy

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in my expierience it's always worth the piece of mind to get an extended warranty.i get it on all my vehicles, atv, side by side ,boats, travel trailer, whatever. some say it's a waste of money, but my last truck had to have the whole front drivetrain replaced (lease return) and the warranty paid for itself on that repair alone.
 

Travelin Ram

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It depends on your financial situation. It’s not a warranty, you’re purchasing insurance.

A general rule of thumb is to insure what you cannot reasonably afford to replace. If expensive repairs in later years are a budget concern, it may make sense to offload some risk.

OTOH insurers are not in business to lose money. They have ALL the data on repair frequency and costs, we do not. Understand going into the contract you are betting against the house.
 

2003F350

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Huge fan of extended warranties. I only buy the factory ones. Shop it online prior to purchase. You then have pricing to bring in and have the dealer match it. If they won't, then simply buy it online after. You do not need to buy it day of purchase.

This is true, but make sure you understand how long you have. If I recall for Mopar warranties it is something like 3 years/36k miles? I might be off but I know there is a limit.
 

2003F350

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It depends on your financial situation. It’s not a warranty, you’re purchasing insurance.

A general rule of thumb is to insure what you cannot reasonably afford to replace. If expensive repairs in later years are a budget concern, it may make sense to offload some risk.

OTOH insurers are not in business to lose money. They have ALL the data on repair frequency and costs, we do not. Understand going into the contract you are betting against the house.

Very well put. Mopar extended warranties are more like insurance you pay for up front and then use as you need. For the price I paid on the EW I had on my 'Wagon (deep discount), it paid for itself with the few repairs I had to have done, surprisingly (parking sensors, trans pan, MAP sensor, and a few other things - it was relatively trouble-free). If I'd paid full price I would have been upside down on it for a long while.

And the lose money comment - that's exactly why Mopar got rid of the Lifetime Maxxcare - it covered basically all functions of the truck for 99 years/999,999 miles...for the price it was CHEAP insurance to basically only ever have to pay $100 for any repair.
 

Docwagon1776

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This gets asked constantly, so I'll just recycle a post I made on the topic before:

I worked for an extended warranty company, both as an independent business and later as a subsidiary of Kemper Insurance. The 'high level response' you get here is nothing compared to the actuary charts the warranty companies have and will likely have self-selection bias toward those who believe it's paid off. What you will get is anecdotes, and multiple anecdotes =/= data. if you're just seeking justification for a decision already made, buy your warranty. If you can't afford repairs, then pay extra for the risk reduction by insuring against the loss. But you will pay extra, if a warranty "made money" for the majority of users...how would warranty companies stay afloat? Let alone afford all the extra logistics and layers of profit vs just repair costs?


Long term, you will lose money. Some individuals may come out ahead. The same is true of a casino, and casinos have higher payout rates. Literally. Slot machines payout a higher percentage of money fed into them then the extended warranty business does.

If you like anecdotes, I bought the lifetime (no longer offered) on my truck. After tax it was roughly $2200. Had I taken that money and invested in an S&P 500 index fund I would have an inflation adjusted $3900 today (minus any tax burden, of course). To date I've used the warranty once, for an ignition coil. Total cost was $350. I paid only the $100 deductible, so I got a payout of $250. We'll ignore I likely could have used an independent shop at a lower cost.

I am still down $1950 in real dollars and $3650 if you count opportunity costs (which you shouuld). Since I have the lifetime, and intend to keep the truck for the foreseeable future, there's still time for it to pay off. I will *probably* get ahead in real dollars at some point unless it gets totaled out. It's much less likely I get ahead in terms of opportunity costs...but I balance that by keeping less money in an emergency fund and investing it. And that's only because it's a lifetime warranty.

I would not buy a set term warranty. Keep an emergency fund so you can 'self-insure' and keep the gains for yourself. If you can't maintain an emergency fund, then you can't really afford a new vehicle anyway and are just inflicting more financial damage to yourself long term.

Additionally, see how many threads there are on this forum about warranty companies, including OEM, denying claims for legit or specious reasons. That's not 'peace of mind'. Money in the bank remains the best 'peace of mind', and if you can't afford the repairs think long and hard on if you can really afford the truck...
 

GTyankee

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I bought a MOPAR Extended Warranty for my new at the time, 2009 Dodge Ram HEMI powered SLT Quad Cab.
I just about broke even on that Mopar Extended Warranty,
if i knew that there were other places to by the exact same warranty from another place beside my own dealership, i would have come out ahead, at that time, i should have bought the Mopar extended warranty from

now there are even more competitors, then before, some are even lower priced for the exact same plan

Shop around !!

Do Not buy any 3rd party warranty from a dealership
ONLY BUY MOPAR
 

Rlaf75

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I personally would buy a factory backed extended warranty. I just bought a Mopar Maxcare plan for my 21 with 5.7. You don't need to buy it at the time of vehicle purchase. You have until the time the factory bumper to bumper warranty runs out.
 

mtofell

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Factory warranty only and shop around rather than buying from your dealer. You can typically purchase from any dealer in the country and up until your 3/36 coverage expires (maybe 6/60 if all you want is powertrain). You can usually get your dealer to match or come close once you get another price from a competitor if you want to roll it into you loan but that's a whole other topic.

As for whether to get a warranty or not... this is usually a HUGE debate and those that say it's insurance are correct. I'm on my third tranny and second engine for the $2200 I paid back in 2014 so you can guess what I think. That being said, statistically the warranties are a bad deal as the company selling them needs to make money. Of course, insurance of all types is a bad deal but we still all buy it.
 
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